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Real Estate Investment Trust

Nasdaq Dubai is home to the world’s largest publicly listed Sharia’a-Compliant REIT both by total assets and by market capitalisation.

REITs are funds that invest in real estate. They enable issuers to raise capital from their property without selling it, through its income stream. Investors benefit by receiving dividends based on the rental income. REITs enable them to gain exposure to property without buying it or spending large amounts of capital. Investors can buy shares in REITs just like shares in other companies.

Two REITs are currently listed on Nasdaq Dubai: Emirates REIT, whose IPO in April 2014 was the first REIT listing in the GCC, and ENBD REIT, which listed in March 2017. Both REITs are Sharia’a-compliant.

Download REIT brochure How to Trade REITs

Benefits of REITs

For Companies

Raise Capital

REITs allow companies to raise capital without selling a stake in the holding company itself.

Leverage

Companies can leverage on their real estate assets by creating a REIT and raising capital through the partial sale of the REIT.

Ownership

REITs will allow the company to keep up to 75% of equity, so you don't need to sell a whole property just to raise capital.

Expansion

Establishing a REIT will allow companies to raise further capital to purchase more real estate assets.

Reduce Cost of Capital

REITs can increase a company’s ability to acquire an investment grade rating for unsecured debt, thereby reducing the cost of capital.

Transparency

Strong corporate governance and disclosure standards provide the ability to expand the investor base due to the added comfort.


For Investors

Income & Long-Term Growth

REITs provide competitive long-term rates of return that complement the returns from other stocks and from bonds.

High Dividend Yield

Significantly higher on average than other equities, REITs have produced a steady stream of income through a variety of market conditions.

Liquidity

Shares of publicly traded REITs are readily converted into cash because they are traded on the major stock exchanges.

Enhanced Diversification

Real estate has historically had a low correlation to other asset classes, giving investors the opportunity to diversify their investments.

Inflation Hedge

Real estate rents and values tend to increase when prices do. This supports REIT dividend growth and provides a reliable stream of income even during inflationary periods.

Communication

With ongoing disclosures, investors are kept up to date with the REITs activities.

Key Characteristic of REITs

REITs are a sub-set of Property Funds, which are designed for income generation. In the DIFC, a REIT in addition to being closed-ended, must meet the following requirements:

  • Be a Public Fund that is listed and traded on a recognised exchange

  • Invest no more than 30% of total assets in property under development

  • Distribute at least 80% of annual net income

  • Borrowing must not exceed 70% of the net asset value of the Fund

REIT Videos

What is a REIT?


Saad Khan
Nasdaq Dubai

How can a REIT be sharia'a compliant


Amro Zakaria
Market Trader Academy

Importance of REITs


Tariq Bin Hendi
ENBD REIT

Where are REITs in the investment spectrum?


Anthony Taylor
ENBD REIT

Benefit from UAE's real estate market


Tariq Bin Hendi
ENBD REIT

ENBD REIT's IPO Journey


Anthony Taylor
ENBD REIT

First listed REIT in the UAE


Sylvain Vieujot
Emirates Reit

Want to know more?

Your success story is our priority. Contact our team to discover how you can take your company to the next level of growth and they will help you with any questions.

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Tahir Mahmood
Tahir Mahmood
Head of Business Development
+971 4 305 5468
tahir.mahmood@nasdaqdubai.com
Khalifa Alhammadi
Khalifa Alhammadi
Associate – Business Development
+971 4 305 5459
khalifa.alhammadi@nasdaqdubai.com
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